Building materials company Builders FirstSource (NYSE:BLDR) will be reporting earnings tomorrow before market open. Here’s what investors should know.

Builders FirstSource met analysts’ revenue expectations last quarter, reporting revenues of $4.46 billion, down 1.6% year on year. It was a mixed quarter for the company, with an impressive beat of analysts’ operating margin estimates but full-year revenue guidance missing analysts’ expectations.

Is Builders FirstSource a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Builders FirstSource’s revenue to decline 1.9% year on year to $4.45 billion, improving from the 21.3% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $3.02 per share.

Heading into earnings, analysts covering the company have grown increasingly bearish with revenue estimates seeing 4 downward revisions over the last 30 days (we track 13 analysts). Builders FirstSource has missed Wall Street’s revenue estimates twice over the last two years.

Looking at Builders FirstSource’s peers in the home construction materials segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Trex’s revenues decreased 23.1% year on year, beating analysts’ expectations by 3.7%, and Hayward reported revenues up 3.3%, topping estimates by 2.1%. Trex traded up 6.3% following the results while Hayward was also up 12.3%.

Read our full analysis of Trex’s results here and Hayward’s results here.

Investors in the home construction materials segment have had steady hands going into earnings, with share prices flat over the last month. Builders FirstSource is down 11% during the same time and is heading into earnings with an average analyst price target of $207.75 (compared to the current share price of $171).

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